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Currency Correlations
Source: https://fxcodebase.com/code/viewtopic.php?f=17&t=843
Forum: 17 · Topic 843 · 5 post(s)
Currency Correlations
Apprentice · Mon Apr 26, 2010 9:15 am
Correlations
Please test this indicator, given the proposals for its further development.
A correlation of +1 implies that the two currency pairs will move in the same direction 100% of the time. A correlation of -1 implies the two currency pairs will move in the opposite direction 100% of the time. A correlation of zero implies that the relationship between the currency pairs is completely random.
0.0 Very weak to negligible correlation 0.5 Moderate correlation 1.0 Very strong correlation (- ) Negative correlation
EUR/USD and USD/EUR have correlation -1, respectively, EUR/USD and EUR/USD have correlation 1.
One extremely useful tool, Not so much for trading as for the creation of long-term analysis. Important for risk control and to identify turning point in the market.
The indicator was revised and updated
Re: Currency Correlations
patick · Mon Apr 26, 2010 1:36 pm
Love your indicators Apprentice. Thank you very much!
Re: Currency Correlations
Apprentice · Sun Dec 05, 2010 12:05 pm
Currency Selector added.
Re: Currency Correlations
Apprentice · Sun Jan 25, 2015 12:19 pm
Major Update.
Re: Currency Correlations
Apprentice · Sun Jul 02, 2017 12:48 pm
The indicator was revised and updated.